A massive apartment sale in Los Angeles last year may result in more future affordable housing construction.
Real estate investment firm Avanath Capital Management, based in Irvine, California, bought a combined 669 apartments in Los Angeles' Baldwin Village neighborhood at 4220 Santa Rosalia Drive in a $220 million deal, or about $329,000 per unit. Avanath partnered with the Housing Authority of the City of Los Angeles to complete the massive deal in August 2022. The transaction won a CoStar Impact Award for sale of the year in Los Angeles after being selected by a panel of local industry professionals.
After the deal, a deed restriction was placed on 468 units in the two-property complex. Half of those 468 units are available to rent to families earning up to 60% of the area median income for Los Angeles, while the other half are available for families earning up to 80% of the area median income.
Looking ahead, the 25-acre apartment property may offer opportunities to build more housing.
"With more than 1 million square feet of land, the future of this unique asset will serve as a model for large-scale housing in the city," said Vince Norris, managing director of real estate brokerage firm Northmarq, which was involved in the deal.
About the sale: The $220 million deal was one of the biggest multifamily sales in Los Angeles in 2022 and resulted in more affordable housing. Calabasas-based Upside Investments was the seller.
What the judges said: "This development will help the underserved residents of L.A.'s workforce," said Marge Enrique, director of marketing for Westhome Property Management.
They made it happen: Northmarq's Vince Norris, Jim Fisher, Mike Smith and Bryan Schellinger were the listing brokers in the deal.
